https://www.taxtmi.com/caselaws?id=767862 Licence fee paid for customised software, where VAT had already been discharged treating the transaction as a sale, could not be included again in the taxable value of information technology software services. The agreement and invoice structure showed transfer of the right to use the software, with control and possession passing to the customer; delivery through a CD or other medium did not change the character of the transaction. As VAT and service tax operated in mutually exclusive fields on these facts, the service tax demand on the licence fee was unsustainable. The bona fide sale treatment also removed the basis for penalty, so the demand, interest and penalties failed. en-us Tue, 25 Mar 2025 00:00:00 +0530 Thu, 27 Mar 2025 08:36:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767862 Licence fee paid for customised software, where VAT had already been discharged treating the transaction as a sale, could not be included again in the taxable value of information technology software services. The agreement and invoice structure showed transfer of the right to use the software, with control and possession passing to the customer; delivery through a CD or other medium did not change the character of the transaction. As VAT and service tax operated in mutually exclusive fields on these facts, the service tax demand on the licence fee was unsustainable. The bona fide sale treatment also removed the basis for penalty, so the demand, interest and penalties failed. Case-Laws Service Tax Tue, 25 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767862